LONDON, May 4 (Reuters) - European shares advanced in thin
trade on Monday, boosted by better-than-expected German
manufacturing data and merger and acquisition speculation about
chemicals companies.

Trading volume was lighter than usual on most indexes
because of a public holiday in Britain, home to Europe's largest
stock market and many large trading firms.

Germany's Dax, up 1.5 percent at 11,630 points,
outperformed its main peers after an index of manufacturing
activity was revised up in its final April reading, suggesting
activity remained healthy despite a slowdown from the previous
month.

"The German economic growth has been solid and gives support
to the stock market," said Christian Stocker, a strategist at
UniCredit. "I think the majority of analysts will be revising
their 2015-16 earnings forecasts higher during the next six
months."

Christian Henke, a strategist with IG, said the German data
could set off a rebound in the DAX after its recent 7 percent
fall, provided that the index closes above 11,400 points,
roughly corresponding to the 23.6 percent retracement of its
October-April rally.
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